Hedge Fund Lonestar Capital to Shut Down (WSJ)
The San Francisco hedge-fund firm Lonestar Capital Management LLC will shut down in one of the larger hedge-fund liquidations this year, according to people familiar with the firm. Based in San Francisco, Lonestar manages about $1 billion, including funds from deep-pocketed investors like David Einhorn ’s Greenlight Capital Inc., the people said. In a letter to investors, founder Jerome Simon called it a “bittersweet moment” and said he was disappointed that recently he could not “claim the very highest ground of perennial outperformance,” according to a person with knowledge of the letter. Its main fund was down more than 2% this year through the end of October, compared with a 1.6% gain for its peer event-driven hedge funds tracked by HFR Inc.
Hedge fund Third Point steps up pressure on Dow Chemical (Reuters)
Hedge fund Third Point said on Thursday it formed an advisory board and launched a new website, Value-Dow.com, to press The Dow Chemical Company (NYSE:DOW), the largest U.S. chemical company, to create more value for shareholders. Third Point founder Daniel Loeb first began urging Dow to split itself into two companies in January and stepped up the pressure in May. Third Point owns a nearly 2 percent stake in the company and ranks as one of Dow’s top 10 shareholders.
Hedge Fund Specialist Joins the New York Institute of Finance (HedgeCo)
The New York Institute of Finance has a new a faculty member, Karl D’Cunha, a specialist in hedge funds, valuation, capital markets, FINRA, emerging markets, and corporate finance. He joins as Senior Managing Director. “The financial services industry is continually evolving and transforming on a global, national, regional, and local level. In order to stay ahead of the curve, industry professionals must learn about the latest trends using real world case studies, up-to date information, and expert guidance,” said Karl D’Cunha, Senior Managing Director at Madison Street Capital. “I am tremendously excited to be selected to join the expert faculty at NYIF.”
Hedge funds poised to pile into China via ‘connect’ channel (Reuters)
When the landmark Hong Kong-Shanghai equity link debuts on Monday, a class of investors that China has kept at arm’s length until now – hedge funds – are expected to plunge into mainland shares. And rules for the coming stock “connect” mean that these more aggressive players will likely be ahead of the pack, as they are not constrained by operational and legal issues that will keep many long-term institutional investors from participating.
BlueCrest To Move To Jersey (Finalternatives)
BlueCrest Capital Management is trading Channel Islands. The US$25 billion hedge fund will move its headquarters to Jersey at the end of the year, it said. BlueCrest’s base is currently about 27 miles to the south, on the island of Guernsey, where it moved from London in 2010. “Jersey has a deep pool of talent for staffing BlueCrest’s corporate headquarters,” firm spokesman Ed Orlebar told Bloomberg News. Jersey is home to nearly 100,000 people, 50% more than Guernsey, and already serves as Brevan Howard Asset Management’s corporate headquarters.
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